A Review of Proposed Insurance Legislation in New York

The proposed law would also require insurance adjusters to undergo mandatory training set by the New York State Department of Financial Services (DFS); create a review board to assess complaints related to unfair claims settlement practices; and provide for auditing claims management practices.

The bill was referred to the State Senate Insurance Committee on May 28, 2025.

S03241 and A00536 — Proposed legislation in the State Senate and the Assembly would require insurance carriers to provide policyholders with a summary document with every policy that explains the policy in plain, easy-to-understand terms. Such summaries would need to explain the limits of insurance, the term of the policy, the premiums to be paid, applicable deductibles and the principal exclusions from coverage.

The sponsor’s memo in support of the bill explains that millions of New Yorkers buy various insurance policies every year, but most have very little understanding of what their policies cover. Thus, few are willing or able to take the time to read the full terms and conditions of their policy, which are not presented in a clear or concise format.

Of course, the summary would include a disclaimer that it is only a summary, and that the complete terms of the insurance policy control.

An amended version of the Senate bill was referred to the Senate Insurance Committee on May 29, 2025. The Assembly passed their version and referred to the Rules Committee on June 10, 2025.

S08258 — Introduced by James Skoufis and referred to the Senate Insurance Committee, this bill would provide new authorization for DFS to supervise insurers deemed to be at risk of insolvency, engaged in hazardous activity or otherwise out of compliance with the Insurance Law and regulations thereunder. The proposed law would allow DFS to attempt to restore a troubled insurer back to financial health and avoid insolvency and liquidation.

S04809 and A05113 — Would authorize the creation of a captive insurance program for commuter vans, black cars, small school buses and charter buses that carry fewer than 25 passengers.

S07987 and A07944 — Titled the “Continuity of Cancer Care Act,” the proposed legislation would amend provisions of the Insurance Law and the Public Health Law to ensure that cancer patients are assured continuity of care in the event that the insurer and oncology provider fail to agree during contract renewal negotiations. Under the proposed law, patients would be entitled to continuing insurance coverage with their provider for the remaining course of their treatment.

Of course, there is no guarantee that these bills will become law. Any of these proposals might die in committee, be voted down, or fail to obtain the Governor’s approval. But keeping abreast of proposed legislation is useful, as it offers a preview as to legislative priorities and potential changes in the legal landscape; a bill that fails to pass this year might be introduced with revisions in a future legislative session. We will continue to report on developments in the Insurance Law here and are always happy to discuss how changes in the law might impact your business.